Monday, December 5, 2016

Mark Chang's offer of JCBNext at RM1.20

I no longer hold JcbNEXT (formerly Jobstreet) and do miss a great business and management. Although there are similar traits in Jobstreet and MYEG in terms business nature, certain moats, the management of the 2 companies are different. One care for its shareholders, the other more of its own pockets - not going to tell which is which but for you to find out!

I just would like to comment on JCBNext towards its offer to purchase all its shares at RM1.20. I do not think it is its intention to delist or make purchases all its shares from the minority shareholders. The offer is out of the requirement under the SC guidelines.

As shown in the red boxes above, the major shareholder has acquired a 20.17% stake from SEEK, to whom Jobstreet.com was sold to. Since the group has now own more than 50% of JcbNEXT, it is obliged to offer the same offer to all other shareholders. I do not think JcbNEXT is to delist its company.

However, as the deal that Mark Chang has gotten is pretty sweet i.e. RM1.20 while some of the people have claimed that the actual value of JcbNEXT is much more than the RM1.20 value, I feel the right thing to do is to offer the sale of RM1.20 by SEEK to shareholders rather than a single individual takes the entire deal up at an attractive price. This means the 20.17% should have been offered to all shareholders rather than 1 individual.

Sorry to the main shareholder of JcbNEXT (Mark) but this is the right thing to do. All food should be offered on the table and not for one to just take and eat it.
(You know what, in his interview with BFM, Mark Chang has mentioned he wanted to invest into companies that have social impact to the community - this is one as largely minority shareholders are considered the social group, to me as most shareholders just want their investment to see through)

Definitely worth watching. JCBNEXT currently sells at more than 30% discount. Little downside risk with huge margin of safety. It would be great if they can take over 104 Corp which has been paying dividends since 2008. I like the management too. Couldn't find a better one.

this Mark guy is taking advantage of the shareholder by forcing shareholder to accept such ridiculous price of RM1.20 when the market was trading the share at RM1.7 - RM1.8. is this call responsible or he is just lining up his own fat pocket. The boss of Maxis and Airasia would not have done this to their loyal shareholder. This JCBNEXT Mark guy is a big cunning crocodile.

Disclaimer

The content here should serve as the opinion of the writer rather than as an advice to buy or sell. You should do your own research and/or seek expert's advice when doing your investments. Any decision that you made is your own and the author should not be held accountable.